Samsung loses to Apple in smartphone battle

Samsung is under increasing pressure after losing ground within the smartphone market not only to cheaper Chinese rivals, but also to Apple, a survey has found.

The South Korean company's second quarter financial earnings guidance, issued last week, was significantly lower than analysts expected. Its operating income of 7.2 trillion (£4.1 billion) was down 25 per cent from the previous year, and the company is on track for its worst quarterly profit in two years.

Sales of Samsung's flagship Galaxy S5 model have continued to lag behind the considerably older iPhone 5s, which went on sale in September last year. The Galaxy S5, which was launched in late March, sold around 5 million units globally throughout May, compared to 7 million iPhone 5s units, according to research firm Counterpoint. The research surveyed 35 markets, accounting for nearly 90 per cent of global sales.

The iPhones 5c and 5s accounted for 11.1 per cent and 11 per cent respectively of UK smartphone sales during May, compared to the Galaxy S5's 9 per cent, research by Kantar Worldpanel ComTech found last month.

Counterpoint added the Galaxy S5 appeared to performing less well than the Galaxy S4 in its early launch against the iPhone 5, with each selling about 7 million units a month.